The IRS sends millions of letters to taxpayers every year for many different reasons. These letters can be letting you know anything from the money you owe the IRS, problems with your tax return, or if you are going to be levied. Some letters need a response, while others are just giving you an update. Any notification from the IRS can be scary and if you are getting them for the first time, you might not be sure what the letters mean. Here are a few important notices to be aware of as some may require urgent action.
CP11: This letter is notifying you that the IRS has found a miscalculation on your tax return and you owe the government money for your taxes as a result. Please read this notice carefully as it will outline what the problems were and suggest additional steps for you to take. You have a few choices with this letter, you can pay the money you owe, contact a tax attorney for guidance, or if you disagree with the changes the IRS has made, you must contact them within 60 days of receiving your notice. The most important thing is to take action, whether it’s paying the taxes owed or talking with the IRS about the changes.
CP14: You will get this notice from the IRS when you owe money on unpaid taxes. On this letter you will be able to find out how much you owe and how you can go about paying that balance. The letter will give you a deadline for paying that balance. You can either pay the balance by that deadline or you can contact the IRS or a tax attorney to help you set up a payment plan.
CP90: This notice is informing you of the IRS’s intent to levy certain assets. You will receive this notice if you have a tax debt and have not paid it by the deadline given. This notice will let you know the steps you must take within 30 days to prevent the levy from being issued. You can contact a tax attorney to help you decide the best course of action against the levy.
CP91: You will receive this letter because the IRS is notifying you of their intent to levy your Social Security benefits. This will happen if your tax debt is still unpaid and that they now intend to take 15% of your Social Security benefits as payment on that tax debt. Read your notice carefully as it explains what steps you need to take within 30 days of your notice to prevent the levy from being issued. You can also contact a tax attorney to help you get the levy released.
CP504: This notice informs you that you have an unpaid tax debt, and if it is not paid immediately, the IRS will levy your state income tax refund and use it as a payment on the taxes you owe. Read this notice carefully, it will tell you your due date, amount due, and offer any payment options available for you. You must make your payments by the due date, or set up a payment plan if you cannot pay in full. This type of notice is extremely urgent.
CP2000: You will get this letter because the income and/or payment information the IRS has on file does not match the information reported on your tax return. This could affect your tax return by causing an increase or decrease in your taxes due. Read this carefully as it explains what information the IRS received and how it may affect your return. This type of notice is extremely urgent.
If you receive a letter from the IRS and are unsure of why you are receiving it or aren’t sure what to do next, Polston Tax can help! Our team of Tax attorneys and case managers can look at the letter and help you figure out what steps to take next. You don’t have to navigate the IRS alone. Call us today at 405-801-2146 or visit polstontax.com to schedule a free consultation!